General questions Flashcards
Explain how the Ghemawat article “distance still matter” and the Levitt essay “The globalization of markets” represent different views on the globalization of the world
Levitt: the world is converging
Ghemawat: the world is semi-global, distance still matter
Explain how the fourth phase of the global marketing evolution by Douglas and Craig 2005, can be connected to the different views on globalization represented by Levitt and Ghemawat
The fourth phase, different strategies are needed for targeting different segments in the world <=> Ghemawat saying that the world is semi-global
Explain the fourth phase presented by Douglas and Craig 2005
developed markets are converging and becoming more and more saturated, creating the need to look outside the developed world. Emerging markets are highly diverging, therefore, it is necessary to develop a semi-global strategy
Identify five new markets (spheres)
- developed markets
- global and regional segments
- country centric elements
- rural markets and urban poor
- country clusters
strategies need to be tailored to the differences between the markets
diverging strategies
rely on local skills, capabilities and knowledge
Define psychic distance, as originally defined by Uppsala
“factors preventing or disturbing the flow of information between firm and market”
Define perceived psychic distance (PPD) and psychic distance stimuli (PDS) - what is the difference and the relationship between the two? (Hutzschenreuter, 2014)
PPD = in the mind of managers PDS = different "distances" included in PD * cultural distance * governance distance (administrative) * geographic distance * economic distance
PPD can be seen as a function of PDS - PDS impact the PPD of managers (and others)
Why is it important to not just talk about psychic distance, but look at the different psychic distance stimuli?
The different PDS might have different degrees of influence (not equally important)
The different PDS are dealt with in different ways
Which of the two strategies of “adaptation” vs “aggregation/specialization” you consider to be advantageous in terms of
performance. Put differently: Which strategy will yield greater firm performance? Why? Please be specific in your line of reasoning.
Performance = Theodosiou: There is not a clear answer. It depends on the unique circumstances in the market.
If there are no specific local consumer preferences regarding the product there is no need in putting the cost to adapt. However, if there is, then it should be considered if the return will outweigh the costs of adapting.
Is the concept of semi-globalization relevant for the concept of business model? If so, wy? If not, why not?
Yes it is. Whether to acknowledge Ghemawat (semi-globalisation) or Levitt (full integration) is related to the locus, modus and focus of the firms upstream and downstream activities in the internalisation process (Rask). Ex. Whether the company should focus on standardisation or adaptation of its building blocks in the business model canvas
Explain the phases of an international marketing strategy (global strategy)
Douglas and Craig
Phase 1: initial entry - focus on scale economy advantage by exporting
Phase 2: local market expansion - focus on scope economy advantage ( you can introduce more products without a separate campaign)
Phase 3: global rationalization - Devising your global strategy. Realising that resources are spreading and have to be rationalised to gain synergy (in countries that are similar you can close offices and different functions. Ex. R&D you can have at home)
What is liability of outsidership?
Not being an insider and therefore do not have specific business knowledge about a market - liability of foreignness complicates this even more (related to the network perspective) - By Johanson & Vahlne 2009
What is liability of foreignness
Being afraid of other cultures, so you choose countries with low psychic distance (related to the learning perspective) - By Johanson & Vahnle 1977
Explain economies of scales
Discuss
Explain economies of scope
Discuss
Why do firms internationalize?
Discuss
